Finance Assignment
I. I invested on January 1st 201735,000€ in a financial product that is giving a compounded interest with payments on a quarterly basis.
On January 1st 2022 I will get back my investment together with the interests, and I know that I will receive 60,212€.
It was a good investment, but I can´t remember the rate.
Could you tell me?
II. A company has the following cash flow:
Period C0= -900
Period C1= +1000
Period C2= -200
Period C3= +600
o Should the company invest in the project if cost of capital is 6%?
III. A Company has been offered the possibility of entering two projects:
o A fIve years project that consists on an initial investment of 60,000 EUR and a set of 5 yearly revenues of 20,000 EUR from year 1 onwards
o Aneight years project that consists on an initial investment of 160,000 EUR and a set of 8 yearly revenues of 30,000 EUR from year 1 onwards.
From the point of view of the payback period, what is the best option
IV. A Company has been offered a five years contract to provide components to a car manufacturer. If they accept that project, there will be an initial investment of 120,000 EUR, an extra expense of 25,000 EUR in year 4, and yearly revenues of 30,000 EUR. The company wishes to gain a8% at least (use this as a discount rate). What is the NPV of this operation?
V. Today it is my 30th birthday. The day I was born, my father invested a certain amount of money in a bank account that generates an annual interest rate of 3,5% compounded monthly. Today, there are 120,000€ in that account.
o How much money did my father invest the day I was born?
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.